Second charge business volumes jump more than a third in April – FLA

The Finance and Leasing Association (FLA) data revealed the value of new second charge business reached £138m during the month. This was a 40% rise on the same period in 2023.

Over the three months to April, the value of second charge business amounted to £405m, while the number of new agreements reached 8,680. These represented increases of 23% and 18% when compared to the same period last year. 

During the year to April, there was a 3% decline in both second charge agreements and the value of business, totalling 31,867 agreements and £1.46bn in business over the period. 

Fiona Hoyle (pictured), director of consumer and mortgage finance and inclusion at the FLA, said: “The second charge mortgage market has seen new business grow in each month of 2024 so far after a subdued performance throughout much of 2023. In the 12 months to April 2024, new business by both value and volume remained 3% lower than in the same period in 2023.” 

Second charges used to consolidate loans

She added: “The distribution of new business by purpose of loan in April 2024 showed that the proportion of new agreements [that] were for the consolidation of existing loans was 58.0%, for home improvements and the consolidation of existing loans [it] was 23.9%, and for home improvements only [it] was 13.1%.

“As always, customers who are concerned about meeting payments should speak to their lender as soon as possible to find a solution.” 

Last month, the FLA reported that second charge business volumes rose 11% year-on-year (YOY) to £137m in March.